TL;DR
- Ethereum transaction fees have dropped to their lowest level in five years, reflecting lower on-chain activity and a potential decrease in demand.
- Ethereum is trading at $1,886 after a 6% rebound, with a 23.52% increase in trading volume, which some analysts view as a sign of accumulation.
- To consolidate a bullish move, ETH must break through and hold above $2,100, but the lack of demand could hinder this resistance.
Ethereum (ETH) transaction fees have dropped to their lowest level in five years due to lower on-chain activity. This decline does not necessarily indicate a bearish trend, but it suggests that demand has decreased compared to previous months.
During the November 2024 rally, fees reached $18 million per day, while now they are at $608,000. This reduction could influence ETH’s ability to maintain its current price and break through resistance levels.
Positive Technical Indicators
In the market, Ethereum is trading at $1,886 after a 6% rebound in recent days. Trading volume has increased by 23.52%, reaching $15.64 billion, which some analysts interpret as a potential accumulation point.
Technical indicators show signs of recovery: the MACD has turned positive, the RSI is trending upwards, and the ETH/BTC ratio shows a favorable trend. Additionally, buy orders dominate perpetual contracts. This suggests that $1,750 could have been a local bottom, although the bullish trend is not yet confirmed.
Ethereum Needs Strong Fundamentals to Recover
Despite these positive data points, the lack of solid demand momentum and the absence of external factors that could create supply shortages limit the potential for a sustained rally. To solidify a bullish move, Ethereum needs to break through and hold above $2,100. If it surpasses this level, profits would be activated for 12.36 million ETH, amounting to $26 billion in positive positions. However, without a stronger fundamental base, there is a risk that any advance could be short-lived.
The market is still evaluating whether Ethereum can sustain its recovery or if it will suffer further corrections. The combination of favorable technical factors with weak fundamentals creates an uncertain scenario. The key is not only breaking $2,100 but holding that level over time. Without this confirmation, bearish pressure could prevail and lead to a new decline.
